DEERFIELD, Ill. (AP) -- Drug and medical device maker Baxter International said Thursday its net income fell 7 percent in the third quarter as it completed its purchase of dialysis products maker Gambro AB.
Baxter's $2.76 billion acquisition closed in early September, and the company said the deal added $100 million to its medical product sales during the quarter. It expects another $400 million in revenue from Gambro in the fourth quarter. Baxter also set aside more money in its litigation reserves and said payments connected to collaborations increased compared to the third quarter of 2012.
Baxter's net income declined to $544 million, or 99 cents per share, from $583 million, or $1.06 per share. The company said it earned $1.19 per share in the latest quarter if one-time items are excluded. Revenue grew 9 percent, to $3.77 billion from $3.48 billion.
Analysts expected income of $1.19 per share and $3.81 billion in revenue, according to FactSet.
The company said revenue from its medical products business rose 10 percent to $2.15 billion because of the Gambro deal and greater sales of anesthetics and cyclophosphamide, a chemotherapy drug. Revenue from its bioscience business rose 6 percent to $1.62 billion on greater sales of hemophilia treatments.
Baxter narrowed its full-year adjusted income guidance, saying it expects to earn between $4.65 and $4.67 per share. It forecast sales growth of about 7 percent, which implies a total of $15.18 billion. Baxter had previously forecast earnings per share of $4.62 to $4.70 and revenue growth of 7 to 8 percent.
Analysts expect income of $4.67 per share and $15.23 billion in revenue, on average.
For the fourth quarter, Baxter expects to earn $1.24 to $1.26 per share, compared with the average analyst estimate of $1.26 per share.
Baxter International Inc. shares slipped $1.03 to $66.53 in morning trading.
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